Mining in Ethiopia

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• Focused on Arabian-Nubian Shield, notably Ethiopia and Saudi Arabia. • Tulu Kapi gold project in Ethiopia will be first production unit 90Kozpa. • Jibal Qutman gold project in Saudi Arabia will be second development • Plus a large exploration portfolio assembled since 2008 • In Ethiopia: 95% of KEFI Minerals Ethiopia (KME) with Govt 5%. In Saudi

Arabia: 40% of Gold & Minerals (G&M) JV with Saudi partner ARTAR.

• In Ethiopia, Tulu Kapi (TK), on track for KEFI to be gold producer by 2017: o KEFI bought TK in Dec 13: 2Moz Resource , including 1M oz Reserve for $10/oz o Mining Licence Application submitted 6 Oct 14. Project finance indicative

terms sheets received for senior project debt $100M o TK initial plan EBITDA ave. of $42-45M pa for 11 years from 2017, at $1250/oz.

IRR 20%-36% A/T, depending on debt-gearing

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INTRODUCTION TO KEFI

BOARD OF DIRECTORS

John Leach

Finance Director

BA(Econ), MBA, MICA (Aust & Canada). Over 25 years' in senior positions within the mining industry. Exec. CFO EMED Mining, Former Directorships with Resource Mining Corporation Limited and Gympie Gold Limited.

Jeff Rayner

Exploration Director

BSc (Hons) Geology. Over 27 years’ experience; BHP Gold, Newcrest Mining in Australia and Indonesia; Chief Geologist Gold Mines Sardinia, VPE Medoro Resources and EM Central Europe EMED Mining.

Ian Plimer

Deputy Chairman

Geology Professor in Newcastle, Melbourne, Munich and Adelaide Universities. Past and present Directorships include Ivanhoe Australia, Lakes Oil, Sun Resources, CBH Resources, Silver City Minerals, Niuminco and various Hancock Prospecting Pty Ltd entities. Much of career in industry.

Harry Anagnostaras-Adams

Executive Chairman

Founder or co-founder Citicorp Capital Investors Australia, Pilatus Capital, Australian Gold Council, EMED Mining and KEFI Minerals. Chairman Semarang Enterprises. Has overseen a number of mining start-ups.

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Norman Ling

Director

Member of British diplomatic service for more than 30 years, for the last ten with the rank of ambassador. Served in a wide range of countries in the Middle East and Africa. His last post, before retirement, was as Ambassador to Ethiopia, Djibouti and the African Union. For the last two years he has been actively involved with development of the mining industry in Ethiopia.

EXPERIENCED DEVELOPMENT TEAM

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Fabio Granitzio Exploration Manager Geologist (PhD. Cagliari, Italy). Track record of gold discoveries in Sardinia and Saudi Arabia. Over 16 years’ experience in the Americas (Escondida), Europe, North Africa and Middle East.

Simon Cleghorn Resources Manager (B. Eng. Min. Exploration & Mining Geology (Hons.) WA School of Mines). Over 21 years in mining geology and development. Commenced in 1990 with WMC & later Plutonic in Australia, Penjom mine in Malaysia, Chief Geologist Zod Mine Armenia and EM at Madneuli operations, Georgia.;

Sergio di Giovanni Metallurgist & Dev. Manager KSA (BSc. Murdoch, Perth, MAUSIMM). Over 23 years experience in operations in Australia, Asia, Europe, Mid-East and Americas. He has expertise in CIL, heap leach and flotation plants for gold, base metals & iron ore mines.

Patrick Gorman Development Advisor & Consultant Mining Engineer (BSc (Hons.) Mining, Imperial College UK, MSc Mining, Colorado School of Mines). A Chartered Engineer (UK) with 36 years’ of international technical and project experience.

Abera Fantaye Database & GIS Manager Geologist (BSc., AAU), Remote Sensing and GIS (MSc., AAU). 30 years experience in mineral exploration and as GIS and database expert (17 years in government & 13 years in private sector).

Kebede Belete Country Manager Ethiopia Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). Over 25 years’ of experience working in exploration projects as Exploration Manager and Country Manager for Ethiopian Ministry of Mines, Golden Prospect Mining Company LTD (UK), Minerva Resources LTD (UK) and Nyota Minerals LTD (UK).

Tadesse Worku Chief Geologist (BSc, AAU., Ethiopia, Msc IIT-KGP. India): Over 20 years as exploration geologist and exploration leader in national, multinational and international projects for gold and base metals in the ANS of Ethiopia. Responsible for discovery & development of Tulu Kapi .

Rob Williams Project & Systems Adviser (BA, MBA, Dip Mining Engineering, Registered Mine Manager). Formerly Project Director EMED Mining, Dep Director Operations Development BHP-Billiton’s Olympic Dam, Principal Engineer Coffey International.

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• 93M people in a fertile country the size of France+Spain, about half the size of W. Australia

• Stable, never colonised base of African Union and UN Economic Commission for North Africa

• One of ony two countries to satisfy the United Nations Millenium Developmental Goals

• World’s 5th fastest growing economy – 10 years of gowth GDP 8%pa and GDP per capita 11%pa

• Mining prioritised in 5-Year Growth&Transformation Plan, to generate of exports/foreign currency

• Highest level of regulatory and political engagement with KEFI, in a pro-development atmosphere

• Production transfering in from China, India, Turkey and South Korea

• Received first credit rating in 2014 and now planning first bond issue

• KEFI’s Tulu Kapi gold project shaping up to be the first internationally finance mine development

ETHIOPIA

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Factors

Geological • Part of prospective Arabian Nubian Shield • Active exploration only recently allowed

Government priority • Govt now overtly encouraging the minerals sector, for the first time

Good local team • KEFI added its technical and finance leadership to the good permitting team of previous owner. Majority of management is Ethiopian

Benefit to the communities • Resettlement and development programs in line with local and international standards (Equator Principles and IFC Standards)

Beneficial to the economy • Will serve the Govt’s priority for generating export revenues and foreign currency, as well as the various development and social program targets

• Ethiopia sets and seriously pursues Five Year growth and Transformation Goals in which mining ranks highly

Accessible and engaging administration

• The administration and regulation of mining is conducted transparently and pragmatically. This is not always the case elsewhere

WHY MINING WILL SUCCEED IN ETHIOPIA

Foreign Currency

Earnings

Foreign Direct

Investment - growth EXPORTS - Growth GDP - Growth

First major foreign investment Ethiopia Gold TULU KAPI – THE BENEFITS

PAYE and COMPANY

TAX TRADE BALANCE ROYALTIES Taxes, share from

Central Govt

MACRO BENEFITS

DIRECT BENEFITS

CENTRAL GOVERNMENT PROVINCIAL GOVERNMENT

FLAGSHIP

BENEFITS

INDIRECT BENEFITS

Employment

Over 90%

Ethiopian

employees,

mainly local

Training Apprenticeships

• Certificate Met Mining

• Certificate in

Business Admin

• Scholarships

Building local

businesses Ethiopian suppliers

to have preference

subject to quality

and price

Multiplier effect • Demand for Ethiopian product inputs

• Demand for goods & services by households

Demonstration benefits • Increased mining & exploration

• Increased foreign investment

• Setting safety standards

• Setting environmental standards

Community Development

Trust Fund

Health • Awareness

• Hospital upgrades

• Upgrade water

Education • School building

• Library

• Scholarships

• Knowledge

transfer to locals

Business Development • Coffee expansion

• Animal husbandry

• Microfinance

• Technology transfer to

locals

Infrastructure • Power provision

• Roads

• Water

CASE STUDY: BENEFITS OF TULU KAPI MINING PROJECT TO ETHIOPIA

Mining is a long-term activity and has high social impact

Mining represents c.20% of Africa’s economic activity and minerals are the continent’s second-largest export category

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DEC

2013 2014 Independently verified mine plan and production target 86Koz

Acquired 75% of Tulu Kapi and set out revised development strategy

Upgraded JORC-compliant total Indicated and Inferred Resource of 24.1 Mt at 2.64g/t Au for 2.05Moz Au

Affirmed processing target to 1.2Moz of ore per annum

Upgraded JORC Resource 1.9Moz Au

Completed acquisition of remaining 25% of Tulu Kapi

Independent verification all-in-cost at $844/oz, owner-mining

Upgraded JORC Reserve to 1.002Moz Au

Approved indicative terms for project finance

Reactivated Mining Licence Application, having verified the targeted plan

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

Increased life-of-mine production

TULU KAPI’S RAPID OVERHAUL SINCE ACQUISITION BY KEFI

Renewal of Exploration Licence

Provided update of planning parameters for revising DFS

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MINING LICENCE SCULPTED TO MINIMISE COMMUNITY DISRUPTION

• Pre-KEFI lease area and site layout • KEFI sculpted the layout to minimise community

disruption. Households to be resettled reduced from c. 450 to c. 250, ony 60 in 1° phase

2012

2014

Green Indicated Red Inferred

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EXTENSICE OVERHAUL OF THE DEVELOPMENT PLAN FOR TULU KAPI

Technical: • Indicated resource now > 90% of

total 2 Moz • 1M oz reserve more robust • Introduced selective mining • Planned head grade increasd

from sub 2g/t to over 2g/t • Capex halved to $130M • All-in-Costs down to c. $844/oz Social & Environmental • Reduced need for resettlement

of local residents • Reduced environmental impact Financial • Assembled cornerstone equity

and debt funding providers

Sovereign Risk (eg policy and legal clarity and reliability) Banks confirmed interest

NGO Normal or Abnormal (eg transparency of agenda and sponsorship) Many NGO’s in a serious environment eg more embassies then anwhere other than NYC Project Maturity

(how actionable by when) Tulu Kapi had a DFS and satisfied permitting, but suspended by owner

Infrastructure (Availability, reliability, cost) Mains electricity at 2-3 c/kw hr bitumen 12 kms away. Strong local government support. Relationships

(which are key and which need improvement) Simple ownership. Excellent Govt and community relations

Scope of Upside (is the upside worth the risk to capital and time). Base case IRR c. 30% + underground + heap leach

Time to Payback/Return (how long is capital at risk for owners and other financiers) Project finance repaid in under 4 years at current gold price

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SOME KEY CRITERIA FOR CAPITAL ALLOCATION

AND HOW ETHIOPIA’S TULU KAPI RATES

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• Q4-14:

• DFS to be updated to bankable standards

• Community resettlement consultations continue

• Examine opportunities for second-hand plant and contract mining

• Q1-15:

• Mining Licence

• Trigger Phase I of community resettlement (c. 60 of 250 households)

• Q2-15:

• Project Finance Technical Audit, DFS sign-off and Project finance formal credit approval

• Q4-15:

• Major works commence

• Q4-16:

• Commissioning production

TULU KAPI: OPERATIONAL PLAN FOR 2015

Harry Anagnostaras-Adams, Executive Chairman Mobile: +357 99457843 Jeff Rayner, Exploration Director Mobile: +90 533 928 1913 England - Registered office Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Turkey - Support and monitoring Tel: +90 232 381 9431 or +90 232 381 9486 Fax: + 90 232 381 9071 Email: info@kefi-minerals.com Website: www.kefi-minerals.com

CONTACT INFORMATION

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